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Be Company uses a predetermined overhead rate based on direct labor hours to locate manufacturing overted to jobs. During the
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Answer #1

OH rate:

= 525,200 / 150,600

= 3.49

Allocated OH

= 3.49 * 135,000

= 471,150

Actual OH 582,300
Less: Allocated OH 471,150
Underallocated OH 111,150

Option (D)

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